FEATURED COMPANIES

The former Yugoslav Republic of Macedonia (Macedonia) has been a European Union (EU) candidate country since 2005. As part of the EU pre-accession process, the country has built closer economic ties with the Union: the EU accounts for 60% of Macedonia's exports and about half of its imports. Closer regulatory and administrative ties with European Commission (EC) institutions have done much to develop the telecom sector and prepare the market for the competitive environment encouraged in the EU.

As part of EU integration legislation has implemented the principles of the EU's regulatory framework for communications, established an independent regulator and set out a number of provisions to provide for a competitive telecom market, including wholesale access to the incumbent's fixed-line network. Although the fixed telephony market has been liberalised, the incumbent continues to dominate the sector. Broadband services are widely available, with effective competition between DSL and cable platforms complemented by wireless broadband and a nascent FttX sector.

Broadband services are available via DSL, fibre, cable
and wireless and the incumbent has launched IPTV services in competition with well-established cable TV operators.

Macedonia's mobile market is served by a triopoly of mobile network operators, two of which benefit from the technical know-how and financial resources of parent companies Deutsche Telekom and Telekom Austria. Mobile data services are also available and this market is also expected to become increasingly important as new subscriber additions fade in the maturing mobile voice market. With WCDMA/HSPA networks in place, the focus for mobile data has shifted to mobile broadband offerings.

Telekom Austria Group and Telekom Slovenije in October 2014 agreed to merge their mobile subsidiaries VIP Operator and ONE.Blizoo was acquired by Telekom Austria in late 2014, enabling the operator to offer quad-play services;Competitors are making inroads into the fixed telephony market, with alternative operators representing a growing proportion of fixed lines. EU-mandated regulatory measures have improved market prospects for competitors.Broadband uptake growth is expected to maintain momentum during the next few years, with the incumbent placing greater emphasis in FttX networks.Digital TV is widely available via satellite, digital terrestrial TV and broadband TV. The incumbent's IPTV subscriber base has grown steadily in the wake of upgraded network capabilities, which has contributed to fewer customers to satellite services.Competition is intensifying in the mobile market, with the emergence of Albafon in 2013. The operator had only 1.2% of the market share by subscribers but this is expected to rise in coming years. Mobile number portability has grown steadily following a reduction in fees. Mobile voice penetration is on a par with the EU average, while high-end mobile data services represent a considerable growth area for MNOs in coming years.The regulator's tender for the use of frequencies for LTE was suspended through lack of interest among operators. A renewed tender completed in mid-2013 has boosted the developing LTE market. ONE launched services in late 2014, and now competes with T-Mobile Macedonia in the sector.In February 2014 Makedonski Telekom completed its migration to an All-IP network.

Data in this report is the latest available at the time of preparation and may not be for the current year.